May Currency Outlook Brought to you by OFX
The first week of May has gone off with a bang, with the US Federal Reserve hiking interest rates by 0.5%. Chairman Jerome Powell pushed back on larger 0.75% hikes which reassured investors, prompting a rally in equities and commodity currencies. However, this was short-lived, markets soon returned to a risk-off mood based on fears that further rate hikes could trigger a recession.
With the Fed’s meeting now behind us, a wide range of factors are continuing to cause financial market uncertainty. Supply chain issues, rising inflation and geopolitical uncertainty are all still firmly in the picture, while central banks are navigating the delicate balance of monetary policy adjustments in this unique environment.
Find out what could impact key currencies in April in a one-page summary [EUR, GBP, AUD, NZD, USD, JPY, CAD, SGD and HKD].
China’s COVID lockdown ripples through financial markets [6 min read]
With a zero-COVID policy, China has put nearly a quarter of the country into some form of lockdown. Find out why this poses a risk to the global economy, and how currencies could be impacted.
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